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E22. 25 Activity Based Budgeting Budgeted Amount of cost Dor Activity Asea CostDrivers Rates outpatient Admitted patient Reception 60 8400forms 65ooforms Treatment 120 800 0 diagnoses 54100 diagnoses cleaning 21 1bus bee . 740opeople 32100 pcopk a . prepare the total budgeted cost for each . activity. LECUBE b' How might you adjust the budget approachif you 003003-043718-004-04-001-0011126 found that outpatients were kept in the emergency Room for one hour on average while admitted Patients Xemained for two hours? C Kthat advantage does an activity-based approach have over the hospital's former budgeting method of basing the next year's U budget on the last year's actual amount plusa percentage increase